NAMA rescue plan - Banks have to lend for our recovery

The European Commission yesterday cleared the way for the National Asset Management Agency (NAMA) to take toxic loans from financial institutions as an important step in restructuring the financial sector.

NAMA is expected to purchase impaired loans with a nominal value of €78bn at a cost of €54bn from five different financial institutions – Allied Irish Banks, Bank of Ireland, Irish Nationwide Building Society, Educational Building Society (EBS) and the nationalised Anglo Irish Bank.

It undoubtedly amounts to the greatest gamble in the history of the State. Experts may argue over the specifics of the best way forward, but there is no doubt that the Government must act, and the success of NAMA is, therefore, in the national interest.